I have lived in my apartment for six years. I originally borrowed $190K as a mortgage and $22K as a personal loan. My my credit union made a bit of a stuff up with the original loan and could not lend me the entire amount as a mortgage. Long story.
Consequently I repaid the $22K within 6 months. This left $190K owing. Almost two years ago I refinanced (as my property value had increased) and the new amount was $300K, of which $285K is still owing. The $100K was for a private use.
If I decide to move out of this property and rent it out for a year I know that I can only claim deductions against a portion of the loan however I am a little confused as to which amount, and what deductions can be claimed - i.e. interest, ongoing costs etc and if so, what percentage thereof? I also assume that I will pay a certain amount of capital gains.
I am considering just selling this property and using the capital I make to invest in other property that is fully deductable. Does anyone have any comments on this and advice as to what I should do?
Thanks,
Goddess K
Consequently I repaid the $22K within 6 months. This left $190K owing. Almost two years ago I refinanced (as my property value had increased) and the new amount was $300K, of which $285K is still owing. The $100K was for a private use.
If I decide to move out of this property and rent it out for a year I know that I can only claim deductions against a portion of the loan however I am a little confused as to which amount, and what deductions can be claimed - i.e. interest, ongoing costs etc and if so, what percentage thereof? I also assume that I will pay a certain amount of capital gains.
I am considering just selling this property and using the capital I make to invest in other property that is fully deductable. Does anyone have any comments on this and advice as to what I should do?
Thanks,
Goddess K